Buzz-Sportswear brand On down after second-quarter sales miss

U.S.-listed shares of sportswear brand On were down as much as 22.36% at $30.11, their lowest since May 2024, after the company missed second-quarter sales estimates due to weak demand amid a tougher consumer environment and higher costs from U.S. tariffs.

The stock was set for its worst day on record if losses held.

On reported quarterly net sales of 850.3 million Swiss francs ($1.05 billion), compared with an estimate of 878.16 million francs. Quarterly sales growth in the Americas, which accounts for more than half of revenue, slowed to 13% in currency-adjusted terms from 17% in the previous quarter.

"We are now observing companies like ONON and VFC get pressured for the opposite dynamic, posting DTC growth but wholesale disappointments," Guggenheim Securities said. It also said investors it had spoken with had been growing quietly bullish into earnings, with many suggesting they were taking a contrarian view.

Despite the miss, On raised its full-year net sales and gross profit margin forecast.

As of the previous close, the stock was down 16.6% year to date.